Off Topic Does anybody understand bitcoin?

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Plum

Plum

Well-Known Member
Apr 19, 2013
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'Cos I don't!

Everything I read confuses me more. I thought I was starting to get it, then I read that Kodak are selling time on computers that do bitcoin mining which has bosted their share price. I mean, wtf is bitcoin mining? What on earth does this definition mean?

With Bitcoin, miners use special software to solve math problems and are issued a certain number of bitcoins in exchange. This provides a smart way to issue the currency and also creates an incentive for more people to mine.

What's going on...<doh>
 
Plum said:
'Cos I don't!

Everything I read confuses me more. I thought I was starting to get it, then I read that Kodak are selling time on computers that do bitcoin mining which has bosted their share price. I mean, wtf is bitcoin mining? What on earth does this definition mean?

With Bitcoin, miners use special software to solve math problems and are issued a certain number of bitcoins in exchange. This provides a smart way to issue the currency and also creates an incentive for more people to mine.

What's going on...<doh>
Click to expand...

There's software you can buy that 'mines' bitcoin. Essentially there are certain mathematical forumulas/codes/whatever that can be carried out/solved and a reward for doing x amount is a bitcoin.

It was designed to be relatively easy to mine at the start, getting harder and harder as time goes by, as there are only about 22 million bitcoins in total (i think).

In the early days a bloke on a laptop could mine for bitcoin just by downloading a few programmes etc. Now the software and kit you would need to mine it costs tens of thousands of pounds so isn't really viable for normal individual.

Technically I could try and use my laptop to 'mine' for bitcoins but due to the lack of processing power I would spend more on electricity keeping the laptop on than I would gain in any potential bitcoin.

It's the wild west in terms of legislation as well, or lack thereof. You have virtual 'wallets' to keep bitcoin in but theres no protection. If someone hacks in and robs all your coin it's gone with no one to turn to.
 
The problem is the term “mining”. No one is finding something that is he seen or concealed. You simply get a payment in bitcoin for allowing your computer to be used to process the massive set of calculations needed every ten minutes to determine who owns what coins.
 
I had a go last week, I put £100 each on xpr and etherum. I’m about £30 up if I cash out now. I know a couple that have made £1400 in the last month on xpr
 
Geo10 said:
I had a go last week, I put £100 each on xpr and etherum. I’m about £30 up if I cash out now. I know a couple that have made £1400 in the last month on xpr
Click to expand...
I'm up £2000 on XRP after 3 months but I did manage to buy at its lowest point. I don't expect to see those gains again. XRP makes more sense as a viable technology and form of currency as essentially it will be used by banks to conduct cross border transfers of funds. Its quick too (3 seconds to move money from point a-to-b rather than 4 working days) so lots of banks are on board (75 globally and counting).
I bought a hard wallet (not online and therefore not hack-able) last week to start holding my currency but the coin exchanges take fooking ages to verify you to start buying properly as they are overrun with people trying to get in on the crypto stuff.

To be totally honest i have no clue about how the value of bitcoin is underpinned. Ironically it has essentially become FIAT currency which is what it was set up to resist.
 
balkan tiger said:
I don't, and with each and every post on here I am getting more and more confused.

I wish I had got in at the beginning when a pizza cost 10 bitcoins, now each one is worth what $15000?

I bet the bloke who bought the pizza is pissed off.
Click to expand...

I bet he is, for an extra couple of bitcoins he could have had raisins & curry sauce on his pizza
 
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I've used it about 3 times. It seemed to take several steps to do a transaction but it worked. You get an internet wallet account somewhere and then get bitcoins from somewhere, pay at your bank account and then send the bitcoins from the wallet to someone. I had to do some confirmations by mobile message along the way.
 
balkan tiger said:
I don't, and with each and every post on here I am getting more and more confused.

I wish I had got in at the beginning when a pizza cost 10 bitcoins, now each one is worth what $15000?

I bet the bloke who bought the pizza is pissed off.
Click to expand...

It was 10,000 bitcoins. Said pizza at today’s value would be $150million.
 
NaNaNa said:
I'm up £2000 on XRP after 3 months but I did manage to buy at its lowest point. I don't expect to see those gains again. XRP makes more sense as a viable technology and form of currency as essentially it will be used by banks to conduct cross border transfers of funds. Its quick too (3 seconds to move money from point a-to-b rather than 4 working days) so lots of banks are on board (75 globally and counting).
I bought a hard wallet (not online and therefore not hack-able) last week to start holding my currency but the coin exchanges take fooking ages to verify you to start buying properly as they are overrun with people trying to get in on the crypto stuff.

To be totally honest i have no clue about how the value of bitcoin is underpinned. Ironically it has essentially become FIAT currency which is what it was set up to resist.
Click to expand...

The original idea behind the Bitcoin was for it to have a stored value (like the first banknotes that were back by gold and silver) linked to hours (or labour) that it took to mine a coin.

However, it's been hijacked by speculators and thus will all end in tears for some.
 
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None of this explains in simple terms to a layman what 'bitcoin' actually is, using fancy language only confuses and already confused subject. Some people have stated that they have already made money, so its a bet? and investment? a gamble? FIAT currncy, that's a car isn't it? or a WTF? The only thing that I do understand is to keep well away, notes and coins I do understand.
 
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C'mon ref said:
None of this explains in simple terms to a layman what 'bitcoin' actually is, using fancy language only confuses and already confused subject. Some people have stated that they have already made money, so its a bet? and investment? a gamble? FIAT currncy, that's a car isn't it? or a WTF? The only thing that I do understand is to keep well away, notes and coins I do understand.
Click to expand...

It's just an online currency. Like a stock price i suppose but you can use it to buy stuff.
 
C'mon ref said:
None of this explains in simple terms to a layman what 'bitcoin' actually is, using fancy language only confuses and already confused subject. Some people have stated that they have already made money, so its a bet? and investment? a gamble? FIAT currncy, that's a car isn't it? or a WTF? The only thing that I do understand is to keep well away, notes and coins I do understand.
Click to expand...

If you're interested I'd urge you read a few books on the subject of how the banking system started.
 
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